Is Your Labor Working for YOU?
Labor day is almost here and one of our readers asked “How can I become a financially secure so all my hard work and labor will count for something?”
The following are some great starting steps to incorporate into your fall financial check-up to become a financially stable:
1. Have a written financial plan that includes your goals, your net worth, your debt-to-income ratio, your savings and investing plans, and your monthly budget.
2. Live below your means. Remind yourself that he who hesitates when it comes to shopping often decides he doesn’t need the item after all and doesn’t want it as much as he thought he did.
3. Save money automatically by having at least 10% of your salary automatically deposited in your savings account each pay period.
4. If you have credit card debt, concentrate on paying it off as quickly as possible. The interest you’re paying is money you could be saving.
5. Avoid using credit cards unless you can, and will, pay the balance off in two months.
6. Contribute enough to your 401(k) plan to maximize your employer match.
7. Invest in mutual funds and have money deducted from your bank account automatically every month to invest in these funds.
8. Educate yourself about investing.
9. If possible and feasible, own your own business.
The name of the money game is not to be constantly seeking out the highest returns on investments, or constantly moving money from one investment to another to chase higher returns. Many American millionaires got that way because they educated themselves about investing and sought professional advice, they chose high-quality blue chip stocks or mutual funds with good long-term performance records, invest consistently, and held onto these quality investments over a long period of time.
As you can see, this is not rocket science and it really is attainable for many Americans. So relax and enjoy yourself this Labor Day and then develop an action plan to make your labor count for more…